Monthly Economic Update

Every month, our economists study the macroeconomic situation. They analyse the events that have had an impact in recent months, and discuss possible consequences.

The art of the deal

The real world impact of the failure of politicians to agree on cross-border ‘deals’ is becoming obvious. Financial markets don’t like it, and investors are shifting into government bonds and safe havens. After months of talks, the US and China seem as far apart as ever on trade and market access, while the Brexit psychodrama has laid bare the divisions within the UK ahead of the latest deadline at the end of October. With business confidence sagging, pressure is on for politicians to get deals done. If they can’t, the economic ramifications could come back to haunt them at the ballot box.